Square’s new Bitcoin checkout could let US merchants accept BTC, hold funds in integrated wallets with zero fees through 2026

• Merchants can accept and hold Bitcoin directly in Square’s dashboard wallet.

• Square waives processing fees through 2026; a 1% fee begins Jan 1, 2027.

• More than 4 million merchants on Square could gain easier BTC payment acceptance, supporting broader crypto payments adoption.

Square Bitcoin service lets US merchants accept and hold BTC at checkout — zero fees through 2026; learn how to enable and manage payments now.

What is Square’s Bitcoin service and how does it work?

Square Bitcoin service is a payments feature that allows US merchants to accept Bitcoin (BTC) at the point of sale and store BTC in an integrated wallet. Merchants can automatically convert portions of sales into BTC, manage balances via Square’s dashboard, and use buy/sell/withdraw tools without third-party wallets.

Who can use Square’s Bitcoin offering?

The service is available to US sellers except New York State and excludes international merchants. Square’s rollout targets physical merchants using Square’s point-of-sale ecosystem, leveraging the company’s existing merchant base of over 4 million users.

Square’s new Bitcoin service lets US merchants accept BTC at checkout, hold it in a built-in wallet and get zero fees on transactions.

Source: StarPlatinum

How will fees and conversion work for merchants?

Square is waiving processing fees for Bitcoin transactions through 2026. Starting Jan. 1, 2027, a 1% transaction processing fee will apply. Merchants can opt to receive full payment in BTC or convert part or all proceeds to fiat via Square’s dashboard tools.

How does this fit into Block Inc.’s broader crypto strategy?

Block Inc., led by Jack Dorsey, has integrated Bitcoin across its products before — notably Cash App — and holds BTC on its balance sheet. Block currently reports holding 8,692 BTC, ranking among the larger corporate holders globally. The Square Bitcoin service extends Block’s payments strategy by enabling merchant-level BTC acceptance and custody options.

Why could this accelerate crypto payments adoption?

Square’s merchant network scale and fee incentives lower friction for BTC acceptance. Research cited by Square projects US crypto payment usage to rise materially through 2026. Consumer surveys from YouGov and market analysis point to payments as a growing practical use-case, especially as AI and agent protocols integrate transactional capabilities.

Source: Cointelegraph

What are the product capabilities merchants should expect?

Merchants can:

• Accept Bitcoin at checkout via Square POS.
• Automatically convert a chosen percentage of sales into BTC.
• Hold BTC in a dedicated Square wallet accessible from the merchant dashboard.
• Buy, sell, or withdraw BTC from the same interface.

Frequently Asked Questions

Can Square merchants store Bitcoin in a wallet?

Yes. Square provides an integrated merchant wallet accessible from the dashboard, where merchants can hold BTC, convert to fiat, or withdraw funds. Wallet controls are managed inside Square’s merchant interface.

Is this service available internationally?

No. The offering is limited to US merchants and explicitly excludes New York State. International merchants are not eligible at launch.

Key Takeaways

• Integrated BTC acceptance: Square enables in-dashboard Bitcoin acceptance and custody for eligible US merchants.
• Temporary zero fees: Processing fees are waived through 2026; a 1% fee begins Jan 1, 2027.
• Wider adoption potential: With millions of Square merchants, this move could materially expand crypto payments usage.

Conclusion

Square’s Bitcoin service represents a pragmatic step toward mainstream crypto payments by combining checkout acceptance, on‑platform custody, and fee incentives. As regulatory clarity improves and merchant tools mature, this feature could accelerate practical BTC use in commerce—merchants should evaluate wallet and conversion settings now to prepare for the transition.